ERC-20
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In Brief
ERC-20 is the technical standard for fungible tokens on the Ethereum blockchain, defining a common set of rules so that tokens work consistently across wallets, exchanges, and apps. It's the most widely used token standard in crypto.
What Is ERC-20?
ERC-20 is the technical standard that defines how fungible tokens are created and behave on the Ethereum blockchain. "Fungible" means each token is identical and interchangeable — like dollars or shares. By following a common set of rules, ERC-20 tokens work seamlessly with wallets, exchanges, and decentralized apps.
ERC-20 is the most widely adopted token standard in crypto. Stablecoins like USDT and USDC, governance tokens like UNI, and thousands of others are ERC-20 tokens.
How Does ERC-20 Work?
The standard defines a set of functions every compliant token must implement, including:
| Function | Purpose |
|---|---|
| `totalSupply` | Reports the total number of tokens |
| `balanceOf` | Checks an address's token balance |
| `transfer` | Sends tokens to another address |
| `approve` | Authorizes another address to spend tokens |
| `transferFrom` | Moves tokens on behalf of an owner |
Because every ERC-20 token speaks this same "language," any wallet or app that supports the standard can support virtually any ERC-20 token.
Why Does ERC-20 Matter?
Interoperability — tokens work across the entire Ethereum ecosystem.
Easy integration — wallets and exchanges support new tokens with little effort.
Foundation of DeFi — most DeFi assets and stablecoins are ERC-20.
Standardization — predictable behavior reduces bugs and confusion.
ERC-20 vs Other Standards
| Standard | Chain | Token Type |
|---|---|---|
| ERC-20 | Ethereum | Fungible |
| ERC-721 | Ethereum | Non-fungible (NFTs) |
| BEP-20 | BNB Chain | Fungible |
| TRC-20 | Tron | Fungible |
Gas and ERC-20 Tokens
Sending an ERC-20 token requires paying a gas fee in ETH, since the transaction runs on Ethereum — even though you're moving a token, not ETH itself. This is why it's important to keep some ETH in your wallet to cover fees when transacting with ERC-20 tokens.
ERC-20 and Trust Wallet
Trust Wallet fully supports ERC-20 tokens, so you can store, send, receive, and swap thousands of them directly in the app. You can also add any custom ERC-20 token by its contract address. As a non-custodial wallet covering 100+ blockchains, Trust Wallet keeps you in control of your private keys — just remember to keep some ETH on hand for gas when moving ERC-20 tokens.